donor managment: thanking, supporting, listening

© Pareto Fundraising 2011

Donor Management: Thanking, Supporting, Listening

How to keep your donorsFiona McPhee, MFIA, MFINZ

Pareto FundraisingFriday 13th May, 10.20 -12.00


Fiona McPhee

http://www.heartfoundation.org.au/


You already have acquired donors

0

50,000

100,000

150,000

200,000

250,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Direct Mail Online Other PhoneNew Cash Recruits by Channel

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Direct Mail Face to Face Online Other PhoneRG Recruits by Channel (All)

Solicitation of cash recruits by channel

Solicitation of RG recruits by channel

Source: Pareto Fundraising AU & NZ Benchmarking 2010

RG recruitment still dominated by direct mail in New Zealand

with Face to Face increasing

Direct mail & the phone are likely your

main recruitment channels


This is about getting them to give again, and again

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

$0

$5

$10

$15

$20

$25

$30

$35

$40

$45

$50

2004

2005

2006

2007

2008

2009

2010

2004

2005

2006

2007

2008

2009

2010

2004

2005

2006

2007

2008

2009

2010

New Reactivated Retained

Mill

ions

Income Donors


A retained cash donor in NZ was worth $75

compared to $56 for a new donor and $58 for

a reactivated donor

Retained cash donors delivered almost 4.6

times as much income as recruited donors in

2010 in NZ.

Retention, Recruitment and Reactivation


What I’ll cover

What behaviours & needs are we addressing?

What can we do to keep our donors?

What you say & how you say it


This is about planning to keep your donors

• To do this developing a strategy that is written with your donors in mind will make all the difference:

“You make your communications about the donor, not yourself. That means all your energy goes to telling the donor what she wants to hear in the way she wants to hear it.” Jeff Brooks, Future Fundraising Now


A planned donor journey

March Appeal Ask

June Newsletter Ask

August Merchandise

Christmas Appeal Ask

Care

Ask

From this … … to This


A planned donor journey

• Creates a vision of where you want to take your supporters during their lifetime with you

• Creates a rapport with the supporter that meets their needs and demands


What do the people who support you want?

Acknowledgement

To know about your successes (impact & performance)

Emotional connections

A relationship on their terms

Supporting to be easy


Their relationship needs?

• Its all about me (the donor) and your beneficiaries (you are mostly just the conduit and in some cases the badge of honor)

Thanks to Moira Clarke, Professor of Strategic Marketing, Henley University

Meet Me

Remember Me

Understand me

Value me


How do brand new donors behave?

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Cash 12m RG 12m

Second Gift Rates New Cash Donors 2010


We retain less than 50% of all new cash

donors recruited.

0

2,000

4,000

6,000

8,000

10,000

12,000

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

2004 2005 2006 2007 2008 2009

Year1 Attrition Year2 Attrition Year3 AttritionYear4 Attrition Year5 Attrition Recruits RG Attrition by Year - Non F2F Recruits (All)

Attrition of Regular Givers

In 2010 16% of new regular givers cancelled

in the first year.


What can we do to keep them?

Start off on the right foot

Plan the conversation

Thank & welcome them


New High Value Cash Donor

3 – 5 Days

• Thank you call attempt & thank you letter (incl. receipt)

2 – 3 weeks

• Feedback letter

4 – 5 weeks

• Follow up ask

5 weeks

• Into communications program

Personal. Thank. Surprise. Make a

connection.

Linked to their initial emotional

response.

What impact has their support had?

Continue the emotional story.


New Regular Giver

Next day

• Thank you call attempt & Email

2-5 Days

• Thank you letter / Welcome pack

4 – 6 weeks

• Engagement communication

6 weeks

• Into communications program

Personal. Thank. Surprise. Make a

connection.

What impact has their support had?

Continue the emotional story.

Reinforce the emotional reasons they’ve signed up

for.


WWF-Australia Program

Day 1: SMS

Day 4: Welcome Call

Day 5: EmailDay 5:

Confirmation Letter

1st Newsletter with

Personalised cover letter

<$20 p/mth High Risk letter

Month 2: Feedback Letter

2nd Newsletter with

Personalised cover letter


Thank you communications

• Not just a financial transaction• Continue the conversation• Consider donor needs


Matthew McPhee26 Kings DriveWanaka, 9305 12 March 2010 Dear Matthew, I am writing to you today to thank you for the extremely kind gift of $75 you sent in response to my recent appeal for help. I can’t express just how grateful I am for your generosity. Thank you again. You may remember the Ronayne family and their son, Joel, from my letter. They kindly shared the story of his battle with neurofibromatosis (NF1), a critical condition that is difficult to manage so doctors recommended amputating Joel’s legs. Without the option of the groundbreaking treatment developed at the Kids Research Institute, Joel would not be jumping, running around, riding a bike, playing with a skateboard, swimming and ten pin bowling today. Thanks to the state of the art biophosphates treatment from our Researcher and Orthopaedic Surgeon, Professor David Little, and his team, Joel is now a healthy and happy eleven year old. To quote his overjoyed mum, Barbara, “Every day we say, ’Thank you’. If it wasn’t for the Kids Research Institute, my little boy wouldn’t have his legs. Joel is the best he’s ever been in his life at the moment. I think the future’s looking great.” Joel owes his steady progress to the cutting-edge research and innovative treatment that was a world first for Professor Little and the Kids Research Institute. Thank you again for helping critically ill children, Matthew. Your help at this time means we can continue to provide real hope for sick kids and their parents. Your support will truly light up the lives of these children and their families. Yours sincerely, Professor Chris Cowell Director, Kids Research InstituteThe Children’s Hospital at Westmead


Matthew McPhee26 Kings DriveWanaka, 9305 12 March 2010 Dear Matthew, I am writing to you today to thank you for the extremely kind gift of $75 you sent in response to my recent appeal for help. I can’t express just how grateful I am for your generosity. Thank you again. You may remember the Ronayne family and their son, Joel, from my letter. They kindly shared the story of his battle with neurofibromatosis (NF1), a critical condition that is difficult to manage so doctors recommended amputating Joel’s legs. Without the option of the groundbreaking treatment developed at the Kids Research Institute, Joel would not be jumping, running around, riding a bike, playing with a skateboard, swimming and ten pin bowling today. Thanks to the state of the art biophosphates treatment from our Researcher and Orthopaedic Surgeon, Professor David Little, and his team, Joel is now a healthy and happy eleven year old. To quote his overjoyed mum, Barbara, “Every day we say, ’Thank you’. If it wasn’t for the Kids Research Institute, my little boy wouldn’t have his legs. Joel is the best he’s ever been in his life at the moment. I think the future’s looking great.” Joel owes his steady progress to the cutting-edge research and innovative treatment that was a world first for Professor Little and the Kids Research Institute. Thank you again for helping critically ill children, Matthew. Your help at this time means we can continue to provide real hope for sick kids and their parents. Your support will truly light up the lives of these children and their families. Yours sincerely, Professor Chris Cowell Director, Kids Research InstituteThe Children’s Hospital at Westmead

I am writing to you today to thank you for the extremely kind gift of $75 you sent in response to my recent appeal for help. I can’t express just how grateful I am for your generosity. Thank you again.

You may remember the Ronayne family and their son, Joel, from my letter. They kindly shared the story of his battle with neurofibromatosis (NF1), a critical condition that is difficult to manage so doctors recommended amputating Joel’s legs. Without the option of the groundbreaking treatment developed at the Kids Research Institute, Joel would not be jumping, running around, riding a bike, playing with a skateboard, swimming and ten pin bowling today.

Acknowledgment, Emotional

connection, Impact


AcknowledgmentImpact


Dear <Salutation>, Thank you so much for becoming a Puppy Pal by agreeing to support Guide Dogs NSW/ACT with regular donations of $<amt> <frequency>. I want to welcome you to this fun – and very important – new initiative. Now that you’re involved, I know it’s going to set a lot of tails wagging! Every month, your contribution will help us turn young puppies into highly skilled Guide Dogs. These amazing animals can make it much easier for people who are blind or have impaired vision to live independent lives. Put simply, they enable people in your local community to get about exactly as they please. Of course, it’s crucial work that makes huge improvements to people’s lives – but we simply couldn’t do it without your support. We don’t charge anyone for our training, and we receive no government funding. That’s why we’re so grateful that you’ve chosen to get involved as a Puppy Pal, and help fund the training of much-loved Guide Dogs. We’d like to shake you by the paw! As a thank you for your kindness, we’ll send you regular updates from the place where it all happens – the Guide Dogs Centre – so you can see for yourself how our puppy students are getting on. The first of many updates is included with this letter. I hope that, as you get to meet more and more of our wonderful students over the coming months, you’ll be as proud as I am of their progress and achievements. What’s more, I hope that these updates will give you an insight into what the training at the Guide Dogs Centre involves. I’ve enclosed a map of the Centre so you can get an overview of the facilities there. What’s really amazing is that new dogs are graduating from the Centre – to incredibly high standards – all the time. In order to keep up with the needs of the 100,000 people in NSW and ACT who have impaired vision, the training of Guide Dogs is an ongoing challenge. Your wonderful commitment helps us meet our current demands – and plan ahead. I can’t tell you how valuable that is to us – and to all the people with impaired vision whose lives will be made better as a result of your kindness. You are doing something wonderful and I truly hope you will carry on doing it for a long time. As the months go by, you’ll be able to correspond with some of the dogs and their instructors. I hope you’ll enjoy getting close to these lovely pups and sharing in their successes as they make their way through their life-changing training. I just know you’re going to find them every bit as adorable as I do. I’ll be in touch again soon with another update. In the meantime, if you have any queries about this work, or the vital role you are playing in it by being a Puppy Pal, please don’t hesitate to contact a member of the team on 02 9412 9300. We’ll be very happy to hear from you. With warmest thanks and very best wishes Alex GreenFundraising Manager

AcknowledgementEmotional connection

Impact


Emotional connection

Impact


Dear Fiona, Thank you so much for your recent gift of $100, and for giving your compassionate support of the Thousand Homes for Hope Appeal. Your gift has been a great help as we take on the massive challenge of renovating, repairing and constructing one thousand homes for one thousand families by the end of the year. We knew when we committed ourselves to this ambitious plan that it would be far from easy. But it is so very important that we succeed. Those who need our help are living in the most appalling conditions you could imagine. They include families like those I told you about, clinging to survival on the Rach Gia dumpsite in Vietnam. With your help, my hope is that, in just a few months, families who have spent most of their lives up to their knees in rotting waste, will have a chance to move into decent homes with clean water and enough space to cook, study and rest in. But I will be honest with you: we still have a long way to go. That’s why I wanted to make an additional request of you today, and ask if you would please consider becoming a Habitat for Humanity Australia HopeBuilder. As a HopeBuilder, you contribute an affordable gift of your own choosing, that comes direct from your bank account or credit card each month. Along with other wonderful HopeBuilders, you’d be helping to build decent homes and a whole new world for people living in desperate poverty – brick by brick, house by house, family by family. In return for such generosity, you will be kept up to date on our projects, so you can see the impact your gift is making, and just how far your love goes. You’ll know your money is being spent exactly as you wish – on real, tangible building projects that will transform lives forever. We are depending heavily on our HopeBuilders to ensure the Thousand Homes for Hope Appeal is a success. And as it’s clear you share our belief in the power of a decent home to change lives, I would be overjoyed if you could join us as a HopeBuilder today. I’ve included a special HopeBuilder form to make signing up extremely easy. But for now, I want to thank you again for the help you have already given. I am always truly grateful for whatever you can manage. With my best wishes,


Dear Fiona, Thank you so much for your recent gift of $100, and for giving your compassionate support of the Thousand Homes for Hope Appeal. Your gift has been a great help as we take on the massive challenge of renovating, repairing and constructing one thousand homes for one thousand families by the end of the year. We knew when we committed ourselves to this ambitious plan that it would be far from easy. But it is so very important that we succeed. Those who need our help are living in the most appalling conditions you could imagine. They include families like those I told you about, clinging to survival on the Rach Gia dumpsite in Vietnam. With your help, my hope is that, in just a few months, families who have spent most of their lives up to their knees in rotting waste, will have a chance to move into decent homes with clean water and enough space to cook, study and rest in. But I will be honest with you: we still have a long way to go. That’s why I wanted to make an additional request of you today, and ask if you would please consider becoming a Habitat for Humanity Australia HopeBuilder. As a HopeBuilder, you contribute an affordable gift of your own choosing, that comes direct from your bank account or credit card each month. Along with other wonderful HopeBuilders, you’d be helping to build decent homes and a whole new world for people living in desperate poverty – brick by brick, house by house, family by family. In return for such generosity, you will be kept up to date on our projects, so you can see the impact your gift is making, and just how far your love goes. You’ll know your money is being spent exactly as you wish – on real, tangible building projects that will transform lives forever. We are depending heavily on our HopeBuilders to ensure the Thousand Homes for Hope Appeal is a success. And as it’s clear you share our belief in the power of a decent home to change lives, I would be overjoyed if you could join us as a HopeBuilder today. I’ve included a special HopeBuilder form to make signing up extremely easy. But for now, I want to thank you again for the help you have already given. I am always truly grateful for whatever you can manage. With my best wishes,

Your gift has been a great help as we take on the massive challenge of renovating, repairing and constructing one thousand homes for one thousand families by the end of the year. We knew when we committed ourselves to this ambitious plan that it would be far from easy. But it is so very important that we succeed. …

But I will be honest with you: we still have a long way to go. That’s why I wanted to make an additional request of you today, and ask if you would please consider becoming a Habitat for Humanity Australia HopeBuilder.

AcknowledgmentSupporting to be

easy



Start off on the right foot

Plan the conversation

Thank & welcome them


How do multi donors behave?

$0

$20

$40

$60

$80

$100

$120

$140

0%

10%

20%

30%

40%

50%

60%

70%

80%

1 2 3 4 5+

Retained Income Per Donor

Cash Donor retention number of previous gifts

The more gifts a donor makes the better our

retention.

Retained cash income by donor type

Nearly 10% of all cash income now comes from regular givers providing additional

cash donations.

50%

55%

60%

65%

70%

75%

80%

85%

90%

95%

100%

2003 2004 2005 2006 2007 2008 2009 2010

Cash Only RG & Cash




Plan the conversations – particularly the care part

Personalise – show them you know them

Integrate across channels

Implement an acknowledgement strategy

Cross sell & Upgrade


Care in the Comms Plan

New Year Donor Care Letter

Feb (Tax) Appeal

Donor Survey

Survey follow up

& Bequest Follow Up

Winter Appeal Wave 1

Winter Appeal Wave 2

Survey feedback & Donor

Care postcard

August Appeal

RG Conversion

& RG Upgrade

High Value Donor Appeal

Summer Appeal Wave 1

Summer Appeal Wave 2


What about my newsletter?

A key message is repeated

They make your donor feel like a VIP

They tell emotional stories

They show impact

They show your donor some thing new (don’t bore them)


What about my newsletter?

A key message is repeated

They make your donor feel like a VIP

They tell emotional stories

They show impact

They show your donor some thing new (don’t bore them)

If your newsletter is not about retaining donors and increasing value from donors why are you spending the time and $$?

Why are you sending it to them?


Integrate


Implement an acknowledgment program

Bequestors

• Confirmed• Handwritten note from bequest officer or assigned manager

Major Donors

• Cash > $5,000 / RG > $100 per month• Personal note / call from Andrew Penman (CEO)

High Value Donors

• Cash >$500 / RG > $50 per month• Personal note / call from Appeals Manager

Mid Value Donors

• All other cash & RG• Thank you letter specific to ask responded to

Reactivated Donors

• Personal note / call from Appeal Manager


Cross sell & upgrade



Plan the conversations – particularly the care part

Personalise – show them you know them

Integrate across channels

Implement an acknowledgement strategy

Cross sell & Upgrade


What you say and how you say it

You are real people

Be beneficiary & impact focused

Tell emotional stories – heart first

Recognise their specific support

Say thank you


Summary

1. Supporters need us to communicate with them

2. Relationship protocols will help to engage and retain

3. What you say & how you say it makes a difference


Fiona McPheePareto Fundraising

[email protected]: fimcphee

Linkedin: Fiona McPheeeNewsletter: www.paretofundraising.com

mailto:[email protected]

http://www.paretofundraising.com/

donor managment: thanking, supporting, listening

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